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Putin to insist on tax preferences for Russian nuclear corporation Rosatom in Turkey

According to the presidential aide, the issue of granting a strategic investor status to Rosatom on the project to build the Akkuyu NPP will be discussed during Putin’s state visit to Ankara on Monday

Vladimir Putin Mikhail Metzel/TASS

Vladimir Putin

© Mikhail Metzel/TASS

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Putin to pay working visit to Turkey on December 1

MOSCOW, December 1. /TASS/. Russian state nuclear corporation Rosatom would like to obtain the status of a strategic investor in Turkey, which would make it possible to cut its income tax by 18%. The issue is expected to be discussed during Russian President Vladimir Putin’s state visit to Ankara on Monday.

“During the upcoming talks, we will make our address regarding the granting of a strategic investor status to Rosatom on the project to build the Akkuyu Nuclear Power Plant, which would mean certain tax relief and would allow to cut the income tax from 20% to 2%,” Russian presidential aide Yury Ushakov said.

He said the issue has been discussed for two years and added that Moscow intends to raise it again.

Rosatom is building Turkey’s first nuclear power plant, Akkuyu, which is due to be completed in 2022. Ushakov recalled that the volume of investment in the project totals $20 billion. Four power units,1,200 MW each, are due to be constructed.

Ushakov said gas supplies to Turkey would also be discussed. He refused to go into detail.

In an interview with Turkish news agency Anadolu shortly before his visit, Putin said the issue of the price of additional volumes of Russian gas for Turkey needs a thorough consideration.

Ushakov said Turkey is in second place after Germany in terms of Russian gas purchases. He said gas supplies are currently carried out via the “western corridor” — in transit via Ukraine, Moldova, Romania and Bulgaria, as well as through the Blue Stream pipeline.

In 2013, Russia supplied to Turkey 26.6 billion cubic meters of gas, and in January-September 2014 — 20.7 billion cu m, or 7.2% more than over the same period last year. In October this year, an agreement was reached to increase the Blue Stream capacity from 16 to 19 billion cu m annually.

He also said Russia and Turkey interact in the issue of the South Stream gas pipeline construction.

Ushakov said ten new agreements are expected to be signed in Ankara on Monday, including a memorandum between Rosatom and Turkey’s Energy and Natural Resources Ministry on training of staff for the nuclear power industry, a deal on mutual legal assistance and a protocol of the intergovernmental commission on trade and economic cooperation.

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Vladimir Putin Oil & Gas Nuclear energy Rosatom Turkey

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